Interest rates hit an unprecedented low over the past week or so. Rates for a 30 year fixed rate mortgage were hovering right around 4.75%. Unbelievable! So if you are thinking about refinancing or buying a new home and are planning on holding out a little longer until rates get down to the low 4's, you might want to rethink that strategy.
I recently red an article in The Wall Street Journal (www.wsj.com) entitled "Under 5%, Mortgages May Be Near The Bottom." The article referenced projections for the coming year of rates anywhere from 4.5% to 5.5%.
What was the reasoning for the projections? An increase in refinance applications has backlogged mortgage lenders forcing them to keep workers on overtime. If lender costs are increasing, the chances for them lowering rates and competing on price is not very good. A decrease in the number of mortgage companies may also cause a further decrease in competition which in turn will naturally cause rates to move a bit higher.
Perhaps the most exciting part of the article referenced the fact that these fantastic rates will most likely cause the prices of homes to hit bottom this year if they haven't already done so.
We have really seen sales in our market pick up over the last two months and I think the combination of great rates, low prices, and a good inventory are to blame! Whether refinancing or buying, you may want to get out there and take advantage of these great rates sooner than later.
I am going to take a day off tomorrow to rest and relax in preparation of busy times ahead! I am off to the MN Boys Basketball Tourney with my Dad tomorrow! Have a great weekend!
breaking my silence...
11 years ago
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